— Kishore V, SME and ACW at Edumarz.
Annual subscription:
- A subscription is a one-time payment made by a member each year.
- Such organisations’ primary source of revenue is this.
- The members’ subscriptions are recorded as a receipt in the Receipt and Payment Account and as income in the Income and Expenditure Account.
- It should be noted that the amount shown in the Receipt and Payment Account represents the total amount of subscriptions actually received during the year, whereas the amount shown in the Income and Expenditure Account represents only the figure for the current period, regardless of whether it has been received or not.
Specific donation:
- Specific Donation is when a donation is received with the intent of being used for a specific purpose.
- The specific goal may be an addition to an existing structure, the construction of a new computer laboratory, the establishment of a book bank, and so on. Regardless of how large or little, the contribution is, it must be capitalised and recorded on the liabilities side of the Balance Sheet.
- The objective is to use the funds solely for the stated purpose.
Sale of Fixed assets:
- Receipts from the sale of an old asset are recorded in the year in which it is sold in the Receipts and Payments Account.
- However, any gain or loss on the sale of an asset is recorded in the year’s Income and Expenditure Account.
- For example, if an item with a book value of Rs. 800 is sold for Rs. 700, the amount of Rs. 700 will be shown as a receipt in the Receipts and Payments Account and Rs. 100 will be shown as a loss on sale of an old asset on the income side of the Income and Expenditure Account and Rs. 800 will be deducted from the total book value of the furniture in the balance sheet.
Sale of Old Periodicals:
- It is a recurring item that is recorded on the Income and Expenditure Account’s income side.
Sale of Sports Material:
- The sale of sports material(used equipment such as old balls, bats, and netting) is a common occurrence at any Sports Club.
- In the Income and Expenditure Account, it is frequently listed as a source of income.
Life Membership Fee:
- Some members elect to pay a one-time life membership fee rather than pay a monthly subscription.
- This sum is credited straight to the capital/general fund as a capital receipt.